Mr Cooper Group Inc fka COOP

[ron_66271]

LP, You Don’t Understand CDS. Derivatives!

CDS(options) cover losses. Like buying a Put contract to insure/protect your stock from a downturn.

It was the obligation of the Trustees to purchase insurance (CDS).

AIG offered the insurance. The middleman.
The writer of the contracts was the TBTF banks.
TBTF FAILED. Ran out of money and couldn’t pay for the losses.
That is why the FDIC is suing TBTF on behalf of the 20 banks (WMB).

The Derivative Contract Writers haven’t settled their obligations yet.


JPM was the writer for 57% of the Derivative Market place.



Ron